If your sed can't handle a literal newline (yes, that's slash, backslash, newline, \2/g, in the wrap between the first and second line) then it's a bit tricky. Some seds also understand \n to mean a literal newline in the substitution part.

Tytalus' solution assumes your fields will always be the final field on a line, which sounds kind of precarious. (Also awk | grep is Useless; awk is perfectly capable of taking care of most of what grep can do.)

I assume that the snippet you provided is part of a valid well-formed XML document. If so, the following XSL stylesheet will transform the XML document into the output you want and is a better solution than using sed/awk/etc.